1. AGM presentation 18 Sep 20131

2. Audit Opinion Auditor-General issued an Unqualified Audit Report  Financial Statements are not materially misstated  Opinion is not given on Performance Information  Improvement from last year as there was a material adjustment with regards to commitments AGM presentation 18 Sep 2013 2

3. Employers info – March 2013 R18,355 (2012:18,108) registered employers 5,068 (2012: 4,818) employers paying SDL levy - Total levies received R223,1M (2012:R206,1M) Applications received by 30 June 2012 (for 2013): WSP’s =1,835 (2012: 1,755) Total amount paid towards Mandatory Grants –R99.9M (2012: R87.9M)–Payout is 72% AGM presentation 18 Sep 20133

4. Levy Growth AGM presentation 15 Sep 20104

5. Levies Analysis YearAmount R’000Percentage Growth % 2009 142 607 8.41% 2010 161 524 13.26% 2011 172 372 6.71% 2012 206 026 19.52% 2013 223 180 8.32% AGM presentation 15 Sep 20105

6. Project Grant Expenditure March 2013 Total project spend: R104.0M (2012:R89.8M) 16% increase Top 10 projects on spending 71% of total Project Expenditure 6 Name R-Millions P4 Learnerships 18.2R14.9M P.7 Learnerships 18.1R11.0M P4 InternsR10.5M P7 Commodity OrganizationsR7.5M NSFASR7.3M P12 CEO/TLSR6.0M P4 BursariesR4.5M P4&P7 Skills Delivery AdministrationR4.4M P7 Skills Programmes 18.1R4.2M 4,1 Workers ProgrammesR3.7M

7. Statement of Financial Performance March 2013 INCOME2012/13 R’000 2011/12 R’000 % Movement Levies, penalties & interest 225,542207,8968.48% NSF & special projects income 15,4742,517500.15% Investment and other income 8,480 8,672(2.21%) Total249,496219,08513.88% AGM presentation 18 Sep 20137

8. Statement of Financial Performance March 2013 EXPENSES2012/13 R’000 2011/12 R’000 % Move Employer grant Discretionary >Paid Movement in Accrual 99,892 101,417 2,598 87,904 88,852 1,046 13.64% 14.14% 148.37% Admin expenses28,02424,81712.92% NSF & Special project expenses 15,4742,517500.15% Total247,415205,13620.61% Net Surplus/(Deficit):2,08113,949(85.05%) 8

9. Statement of Financial Position March 2013 ASSETS2012/13 R’000 2011/12 R’000 % Move Property Plant & Equipment4,6274,6080.40% Intangible assets Receivables 16 10,780 46 3,498 (65%) 200.08% Cash and Bank173,437175,738(1.30%) Total188,860183,8902.70% AGM presentation 18 Sep 20139

10. Statement of Financial Position March 2013 EQUITY & LIABILITIES2012/13 R’000 2011/12 R’000 % Move Grant and Other Reserves 116,419114,3391.81% Capitalisation reserve3,107 0% Payable & Provisions67,57265,9342.48% Grants & Donor Funding 1,762 510245.49% Total188,860183,8902.70% AGM presentation 18 Sep 2013

11. Discretionary Reserve AGM presentation 18 Sep 2013 YearDiscretionary Reserve Approved By Board Contracted 2012/13R115,15MR108,18M R77,20M 2011/12R113.09MR 101.24MR 57.65M % Movement 1.82%6.41%33.91 Allocation of Discretionary Reserves

12. Cash Flow Statement –Summary March 2013 12 Cash Flow Statement2012/13 R’000 2011/12 R’000 Net Cash Outflow from operating Activities (2,063)28,799(107.16%) Cash Outflow from Investing Activities (169)(519)(67.43%) Net Decrease in Cash and Cash Equivalents (2,301)28,280(108.14%) Opening Cash Balance175,738 147,45819.18% Total173,437175,738(1.30%)

13. Conclusion 13 Questions?

14. Conclusion Thank You 14